Salespeople
Speak Out How it looks from the field‌ Page 13
Win the Hearts and Minds of Your Customers and Prospects Why Price (Almost) Never Wins a Contract
news Office Furniture Partnership, New Jersey Dealer, Offers ‘Hugs From Home’ to Support Troops in Iraq and Afghanistan
Government Affairs If you’re still wondering why office furniture dealers need a strong government affairs advocate to fight on their behalf, take a look at the OFDA pages in this month’s issue.
Office Furniture Partnership staff
On the national level, the association is part of a valiant effort to secure a healthcare reform bill that will bring genuine relief for dealers and other small businesses like them, while two important issues —Florida’s restrictive interior design law and New Jersey’s largely dysfunctional procurement system —are commanding attention at the state level. Each of these issues, in its own way, underscores the importance of an aggressive, well-funded lobbying effort—both nationally and at the grassroots level—for the dealer community and its business partners.
101st U.S. Airborne Division What does the office furniture business have to do with U.S. troops currently serving in harm’s way on our behalf in Iraq and Afghanistan? More than you might think, if Bob Rigby and his team at Office Furniture Partnership have anything to do with it. For the past four years, the Morristown, NJ-based Kimball dealership has organized “Hugs From Home,” a program by which they support local area troops serving in far-off places by sending them much-needed supplies. The program gives 12-inch, clear, plastic tubes to businesses to fill with items for soldiers. “Since we started the program four years ago, we’ve shipped more than 7,000 ‘Hugs,’ and each year companies get more creative with the items they include in their tubes,” said Bob. “To make it easy for companies to identify what troops need and want, a list of guidelines and commonly requested items accompany the tubes. We try to make it as simple as possible to participate.” The tubes are provided to interested companies and must be returned within a few weeks for delivery. “We appreciate our select dealers taking initiative to provide companies with a creative outlet to support our troops and provide much needed supplies,” said Dirk Manning, vice president of sales for Kimball Office. “The soldiers appreciate the gesture and enjoy receiving food, toiletries and games during their long deployments away from home.” Interested in participating? Contact Bob Rigby at (973) 867-3403 or bobr@officefurniturepartnership.com.
continued on page 3
MARCH 2010
Time to Step Up to the Plate on
OFDEALER
Healthcare costs have basically been out of control for small businesses for far too long and unless OFDA and its fellow small business associations are able to make their voices heard, chances are things will get a whole lot worse before they get better. And while the situations in Florida and New Jersey are limited to those states right now, the potential exists for their impact to spread to other parts of the country. Without any kind of pushback, Florida’s interior design law, for example, could well become a model for similar legislation in other states and create more problems for dealers. OFDA is right in the middle of the fight on these issues, and it needs your active support. If you aren’t yet a member, now’s the time to do something about it. Go online at www.ofdanet.org and join. If you are a member, then contact OFDA’s president, Chris Bates and find out how you can get involved on these issues and others like them. Government today has a voracious appetite for our tax dollars and an equally strong appetite for excessive and ill-considered regulation. If we don’t give our support to the effort to curb those appetites and do what we can to see our own interests represented properly, we’ll only have ourselves to blame for the results. Simon DeGroot Editor in Chief OFDealer
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Dealer News } continued from page 2 United Way board member, reports that SPACE drivers helped deliver over 14,000 gifts to needy families last Christmas.
Community Involvement is Core Value and Then Some for SPACE, Michigan Dealer
The dealership’s commitment to community service is truly company-wide, says Kathie. In addition to Colette’s United Way involvement, just about all the senior management team have held volunteer leadership positions with various local charities and service organizations, while the dealership’s installers are among the most enthusiastic supporters of the annual Day of Caring, a special event organized by United Way where the focus is on providing house clean up and repairs for senior citizens and others in need.
Space customer care associate Linda Anthony put together this team of walkers to raise money for breast cancer research.
It’s not hard to find contract furniture dealers who are active in their communities and doing good things in support of worthy causes. But few dealers bring as much of a commitment to community involvement as the folks at SPACE, a Haworth dealer in Midland, MI, about 120 miles east of Grand Rapids. When they first opened for business in 1995, co-founders Kathie Fuce-Hobohm and Lisa Hulbert made community involvement a core value for their dealership and it’s been that way ever since. “At SPACE, we believe in giving back to the communities that support our business,” says Kathie. “It’s not only the right thing to do. It also resonates with the community at large and, just as importantly, attracts the kind of employees who can really make a difference for our dealership.” The management team at SPACE doesn’t just talk a good fight about community involvement. They’re also willing to help pay for it. The company as a whole supports a broad range of causes and organizations. For the past five years, for example, SPACE has sponsored an annual “Excellence in Community Service” award, by which its local Chamber of Commerce recognizes an outstanding individual for their efforts in the community. But that’s just for starters. Each employee at the dealership — and there are over 30—also receives 26 hours of paid time off each year to volunteer with the organization of their choice. Reflecting the scope of the dealership’s involvement, VP of finance and administration Colette St. Louis, herself a former
“Community involvement truly is a win-win for us, our clients and for the people we help,” Kathie says. “Our own people feel good about what they do, it always generates a positive reaction in the community, and, particularly these days when things generally are so challenging, it helps make life a little easier for those who need help most.”
Creative Comes Up with Innovative Approach to Helping Employees in Need When the economy heads south, it’s not just office furniture sales that suffer. People get hurt, too. At Creative, a Steelcase dealership in Richmond, VA, CEO Bob De Lille and his team have come up with a program that not only provides much-needed help when times are tough, but also sends a strong message about the dealership and its core values. It’s called Creative Cares and while it’s not new at the dealership, the current state of the overall economy has made it more valuable than ever. While Creative Cares was started by an initial company contribution, the fund today is supported by voluntary contributions from employees that are matched by the dealership. A team of volunteer employees manage the program, reviewing applications and making recommendations for gifts or loans to fellow team members in need. Last year, for example, the program helped three employees avoid foreclosure proceedings on their homes and it is also there for employees whose spouses may be affected by layoffs or who get hit by unexpected medical bills. “We’ve always believed that businesses have a broader responsibility than just making money,” says Bob. “Creative Cares expresses that belief and sends the message that we are here for our people, particularly in tough times.” continued on page 4
MARCH 2010
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Dealer News } continued from page 3 Franklin Interiors, Pittsburgh Dealer, Celebrates 65th Anniversary Congratulations are in order for Ralph Dallier and his team at Franklin Interiors in Pittsburgh, which is celebrating its 65th year of service to businesses in western Pennsylvania and West Virginia. The dealership was founded by the Franklin family in 1945, initially as a residential interior design firm offering high-quality home furnishings and draperies. Over time, the company's focused shifted to the commercial interiors marketplace and it became an Authorized Steelcase dealership. Current owner Ralph Dallier purchased the dealership in 1992 and has seen business more than triple in size since then. Like just about every dealer, Ralph and his team have found recent years challenging, but, he says Franklin has done a good job of developing new markets in the healthcare and education segments and has also built a nice ancillary business in commercial flooring. And even though business isn’t exactly rolling in through the door right now, Ralph is still investing in the future, having recently completed a major new showroom renovation. Not a bad way to get ready for the next chapter in the Franklin story!
Fluid Interiors, Twin Cities Haworth Dealer, Hosts Special Mentoring Events for Design Students Last month, the dealership hosted two special mentoring events that brought together aspiring young design students and seasoned professionals from the A&D community to network and give the students an opportunity to learn more about their chosen field. Working in cooperation with local chapters of IIDA and the NEWH hospitality industry network, Fluid played host to over 120 students and design professionals (about 60 each) at two separate events held on consecutive days, with students coming from as far away as design schools in Iowa to attend.
For all the changes the office furniture industry has seen in recent years, it remains very much a relationship business. In Minneapolis, the folks at Haworth dealer Fluid Interiors are putting a special emphasis these days on making sure their relationships with key buyers and influencers are not just strong today but stay that way well into the future. MARCH 2010
“We have a long tradition of support for our local A&D community and the mentoring programs offer a new and innovative way to get involved with them,” says Rosa Brandt, A&D account executive for Fluid. “In addition, it’s also a great opportunity to support the future of our industry as a whole.” And if it leaves attendees with a good feeling about Fluid and the support it provides the A&D community, that’s not a bad thing, either!
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BIFMA January Numbers Show Continuing Order and Shipment Declines The Business and Institutional Furniture Manufacturers Association (BIFMA) recently released its market figures for January and once again, the trend was depressingly familiar. BIFMA said January orders declined 15%, worsening sequentially versus December’s 11% drop despite an easier prior year comparison (-25% in January 2009 compared with -17% in December 2008). January shipments declined 12%, versus -20% in December and -26% in January 2009. BIFMA now expects 2010 orders to decline 1.5%, compared with its previous estimate
of -2.3% and is forecasting a decline in shipments of 3.8%, a slight improvement over its previous forecast of a 4.6% dip. In addition, BIFMA offered its first forecast for 2011, calling for a 6.8% increase in orders and a 7% gain in shipments. BIFMA also said it does not expect the industry to return to year-over-year growth until the first quarter of 2011, one quarter later than its previous projection. Key economic drivers of office furniture consumption remain mixed, noted investment analyst Budd Bugatch of Raymond James. “Corporate profits have begun to improve, driven primarily by cost cutting, with spotty revenue growth,” Bugatch noted, pointing out that earnings per share for the S&P 500 in last year’s
HON Introduces Huddle, NEW Multi-Purpose Table Line The HON Company has introduced Huddle, a new collection of multi-purpose tables designed to address new work styles and the trend for meetings and work to happen throughout a facility, including impromptu meeting spots.
fourth quarter posted the first yearover-year improvement in 10 quarters, according to researchers at First Call. Bugatch also pointed to improvement in CEO confidence and a moderating trend in job losses as positive indicators, though he also noted the Architect Billing Index (which tends to lead non-residential construction by 9 to 12 months) fell to 42.5 in January, down from 45.4 in the previous month. Tight credit conditions and the typically long lead time between planning and completion of new office buildings seem likely to weigh on project-related office furniture demand for the foreseeable future, Bugatch noted.
in training rooms, project rooms, large offices – and more often than not, in an impromptu spot where two or three people want to quickly put their heads together to solve a problem. To provide the ideal solution for the today’s office, The HON Company is pleased to introduce the new Huddle™ collection of multi-purpose tables.
“Huddle tables provide the perfect platform for training, meetings and collaboration by allowing you to use the same space for a variety of purposes,” said Fred Colony, vice president of products for The HON Company. “Arrange tables in rows for training in the morning, and then reconfigure them into a presentation-friendly ‘u-shape’ just a few hours later. Or pull one into an office for a spontaneous meeting with a coworker, then push it against the wall to display items for a new business meeting. The possibilities are virtually endless.” The line offers a variety of accessories to tailor the tables for specific uses, including optional ganging hardware that allows the tables to be locked into place. Gone are the days when meetings were held in traditional conference rooms. In today’s office, work happens everywhere –
These thoughtfully designed tables feature smart design, flexibility and a choice of base, edge and finish options to meet the needs of smart, agile businesses. continued on page 7
MARCH 2010
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Industry News } continued from page 6 “Huddle tables provide the perfect platform for training, meetings and collaboration by allowing you to use the same space for a variety of purposes,” said Fred Colony, vice president of products for The HON Company. “Arrange tables in rows for training in the morning; and then reconfigure them into a presentation-friendly ‘u-shape’ just a few hours later. Or, pull one into an office for a spontaneous meeting with a coworker; then push it against the wall to display items for a new business meeting. The possibilities are virtually endless.” Huddle tables are easy to set up, rearrange and store when not in use. And, Huddle tables are perfectly compatible with any work environment – offering nine rectangle-top work surface sizes, three base options (post leg, t-leg and flip-top for easy nesting), 16 standard laminate finishes, 15 edge colors, 10 base paint colors and three edge detail options. To allow for space-efficient table storage, Huddle tables offer a nesting base. While nested, optional modesty panels drop down so the tables can be nested together without removing the panels. And to ensure safe, soft and quiet fold-down operation, an innovative dampened articulation function has been added by HON to Huddle’s hinge mechanism. Huddle tables are also available with glides for stationary use, or casters for enhanced mobility and reconfiguration.
Several key sales management appointments have been made as part of the launch, including: n Rich Aievoli, vice president & general manager, sales; n Felton Jones, region sales director, West; n Michael Pritchard, area sales manager, West; n William Miller, region sales director, Central. “Building a dedicated furniture sales team, with focused furniture merchandising, marketing and operational experts, will help us serve the needs of resellers who already specialize in furniture as well as those across other channels looking to grow their furniture business,” said Fahey. “We bring a vast pool of resources to apply to many different furniture needs: broad selection of products, deep inventory, nationwide distribution, quality marketing tools and value-added support services.” The new division will continue to provide distribution through the United Supply Division’s network, with the Furniture Customer Care group based in St. Louis.
Safco Classroom Desk Heading to the Smithsonian
Adding further customization, the Huddle collection offers a variety of accessories to tailor the tables for specific uses. Optional ganging hardware allows the tables to be locked into place – ideal for training rooms or areas open to the general public. Optional wire management trays and USB grommets are also available. An additional benefit of the Huddle multi-purpose tables is their SCS Indoor Advantage™ indoor air quality certification by Scientific Certification Systems (SCS). When configured with t-mold or edge-banded tops, the collection meets SCS Indoor Advantage™ Gold certification – the most rigorous indoor air quality criteria in all of North America. For more information on the Huddle family of multi-purpose tables, visit huddle.hon.com.
United Stationers Creates New Furniture Division, Names Key Managers United Stationers has created a new United Stationers Furniture Division, which will operate as a part of United Stationers Supply Co. United veteran Jim Fahey has been named president of the new division, which will have its own channel marketing and category management team, as well as a nationwide team of, dedicated furniture salespeople. MARCH 2010
Safco’s AlphaBetter classroom desk is scheduled to go on display at the Smith- sonian’s Cooper-Hewitt National Design Museum in New York City as part of the museum’s “Why Design Now?” exhibit, which will run May 14, 2010 - January 9, 2011.
OFDEALER
continued on page 8 PAGE 7
Industry News } continued from page 7 The exhibition examines why design is an essential tool for solving some of today’s most urgent problems, with items presented through eight different design themes. The AlphaBetter Desk, designed by Tim Skiba of Wisconsin based Sunway, will be featured under the “Simplicity” theme, which highlights designers who strive to simplify production processes and lower materials usage.
Senior Promotions at Kimball International’s Furniture Group Kimball International, Inc. has announced the promotion of several key leaders within the company's Furniture Group of branded companies. Don Van Winkle, previously vice president and general manager of National Office Furniture, has been promoted to president of Kimball’s Office Furniture Group and vice president of Kimball International, Inc., with responsibility for National Office Furniture, Kimball Office, and the Furniture Group Shared Services organization. Also at National, Kevin McCoy, formerly National’s vice president of sales, has been appointed to succeed Van Winkle as vice president and general manager, and Kourtney Smith has been promoted to vice president of marketing.
National initially went to market with five casegood series and two seating lines. Now, the company offers over 20 in each category including extensive tables, conferencing and media solutions.
Jasper Group Announces New Branding Effort and 2010 Growth Plan Jasper Group, parent company of the JSI, Klem and Community brands, has announced a new branding initiative designed, says marketing director Ashley Werner, to “communicate through our logos what people experience when they visit us in Jasper.”
In addition, Jasper president and CEO Mike Elliott said his team is re-introducing Jasper Group to the industry with several expansions, additions, and growth-oriented endeavors. They include five new products slated for release before June, Greenguard certification of Jasper’s Vision series, a 5,300 square foot showroom in Chicago, four new web sites and more.
Design Professionals Can Give All Clients a 3D Experience
Finally, Stan Sapp, currently vice president and general manager of Kimball Hospitality, has been promoted to president of Kimball Hospitality, and vice president of Kimball International, Inc. Sapp will continue to be responsible for the company's hospitality brand, but will take on the additional focus of growing Kimball International into other global markets.
National Office Furniture Celebrates 30 Years Ice Edge Business Solutions has launched ICEvision, a program it describes as “the next generation of web-based tools for visualizing three-dimensional environments.”
Congratulations are in order for National Office Furniture, which this year celebrates its 30th anniversary. Founded in 1980 by parent company, Kimball International Inc., National said in a statement it was created to deliver on “two fundamental objectives: provide customers with quality office furniture at a better value; and offer shorter lead times.”
MARCH 2010
The company said ICEvision merges with existing 3D modeling software like Google SketchUp Pro, and Autodesk products Revit, AutoCAD and 3ds Max at the click of a mouse. The company said it also works with AutoCAD exports such as those from 20-20 and Configura tools. Design professionals using these platforms easily share their work in ICEvision to help clients understand the 3D qualities of buildings, mechanical systems and interiors, the company said.
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S A V E
T H E
D A T E
OFDA 2010 CONFERENCE
October 9-12 Hyatt Regency Coconut Point Resort and Spa Bonita Springs FLORIDA
On balance, OFDA believes none of the final proposals would
OFDA Increasingly Active on State and Federal Government Advocacy Fronts
significantly slow the growth of health insurance costs for small
In recent months OFDA has played an increasingly active role in promoting members’ interests at both the federal and state
businesses and could in fact aggravate an already terrible premium increase situation.
government levels. These advocacy initiatives have focused on
Contact your House representative (www.house.gov) and
federal healthcare reform and on critical, but distinct issues
senators (www.senate.gov) to voice your opinions on this
affecting OFDA members in two key states: Florida and New
legislation. OFDA has posted relevant background documents
Jersey.
and recommended talking points developed by the NFIB-led coalition in which it participates.
Healthcare Debate May be Reaching the Final Phase Congressional consideration of healthcare reform legislation
Appeal Likely of Federal District Court Decision on Florida’s Interior Design Law
has reached a critical stage, with a major push by Democrats
Last month in Tallahassee, FL, U.S. District Court Judge Robert
to introduce and pass a bill based on President Obama’s reform
Hinkle issued his decision on the constitutional legal challenge
proposal that was highlighted in a bipartisan summit meeting
by the Institute for Justice against Florida’s combined interior
with the President in late February.
design title and practice act. OFDA and its members have
With no evidence of bipartisan compromise appearing during or following the summit, the Democratic Party leadership in the House and Senate plans to move the legislation through the
closely monitored this case, which was filed after the association and others in our industry unsuccessfully sought to negotiate amendments to the law to narrow its scope and
controversial “reconciliation” process over the objection of
enforcement.
virtually all Republicans and a number of conservative
Included in the hearing record was a deposition statement from
Democrats in both chambers of Congress.
Chris Bates, OFDA president, regarding the adverse impacts of
To succeed, Democrats need only a simple 50-vote majority in
Florida’s restrictive law and its enforcement on member dealers,
favor of the final bill, rather than a super-majority of 60 votes.
manufacturers and service providers in Florida and other states.
There is still time for small businesses to influence the outcome
The Institute for Justice is now expected to file an appeal of the
of this debate. OFDA is a member of the NFIB-led Small
court’s mixed decision in an effort to reverse the district court’s
Business Coalition for Affordable Healthcare, which has
finding, which has done little to resolve the legal concerns of
concluded that the approved House and Senate bills, as well
non-licensed interior designers and dealers, manufacturers and
as the President’s legislative outline, all fail to address the
third-party CAD-design companies that offer space planning
critical need for fundamental reform of the small business group
services to commercial customers.
health insurance market.
With respect to “non-residential interior design,” Federal Judge
OFDA encourages small businesses throughout the office
Hinkle found the Florida statute requiring a person to obtain a
furniture industry to review the legislative summaries posted on
license in order to provide nonresidential “interior design”
its web site (www.ofdanet.org), and to evaluate how these
services—as that term is properly construed—is constitutional.
proposals would impact their individual businesses. MARCH 2010
continued on page 11 OFDEALER
PAGE 10
OFDA News } continued from page 10 Meanwhile, the interior design community around the country
plans have been shared with and used by DEPTCOR,
continues to push state legislation to further regulate or
which ultimately was awarded the contract while industry
reinstate interior design laws, some of which could be quite
paid the design expense.
restrictive.
4The state has been exceptionally slow in authorizing
While most dealers and others in the industry acknowledge and respect the title and skills of interior designers, they continue to challenge the need for comprehensive regulation of the practice of interior design.
additions and changes in products sold under contract, as well as price adjustments that are justified according to state regulations. OFDA selectively plays a role as a facilitator of government
As such, this one-size-fits-all regulatory approach—as applied in the extreme in Florida—is expected to be challenged in federal appeals court later this year.
procurement or other advocacy initiatives in situations where members are willing to participate in grassroots advocacy activities and/or to fund specific legal, legislative or regulatory action to achieve desired reforms.
New Jersey Furniture Procurement Rules in Need of Major Reform
This has been the case in New Jersey in 2009-10 and in Texas
In New Jersey, OFDA also has been active recently in working with legislators and the newly elected governor and his administration
to
challenge
the
state’s
dysfunctional
in 2008, where industry engagement was exceptionally strong and led to significant changes in that state’s proposed bid and contract guidelines.
procurement system as it applies to the sale of office furniture
Contact Chris Bates, OFDA president at cbates@ofdanet.org
and its installation in that state.
(Tel: 703/549-9040, x 100) with questions or comments. continued on page 12
Most industry dealers and manufacturers that also have state government business in other states highlight that New Jersey is the worst in terms of doing business. The list of industry concerns is long: 4New Jersey law mandates state and county agencies to purchase office furniture manufactured or produced by
OFFICE FURNITURE KEYS & LOCK CORES OVERNIGHT!
DEPTCOR (Department of Corrections), unless it certifies that it cannot provide the requested products. 4Typically, inmate labor is also used for installation of purchased furniture. Since there is no competitive bidding,
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the state often pays above market rates, while industry manufacturers and dealers have greatly restricted access to state business. State employment also is lower as a result of the DEPTCOR mandate. 4In many cases, DEPTCOR has little or no role in the manufacture or production of the office furniture it sells, beyond simple assembly, packaging or delivery. These rules have been circumvented because New Jersey law does not define those terms.
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4When the state does allow industry manufacturers and dealers to bid, there have been many situations in which they develop space plans only to learn later that those
MARCH 2010
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PAGE 11
OFDA News } continued from page 11 OFDA Announces 2010 Officers and Directors The Office Furniture Dealers Alliance (OFDA) has announced new officers and directors for its 2010 Board of Governors. Carlene Wilson, principal and vice president of sales and marketing with Dallas, TX-based BKM Total Office of Texas, will serve as the 2010 chair of the OFDA Board of Governors following a year as vice chair. Frank Gutwein, president of Widmer Interiors, with offices in Peoria, Normal and Champaign, IL, has been elected vice chair for 2010. “Carlene’s experience as a dealer active in general commercial and, more recently, in expanding business in growing vertical markets such as higher education and healthcare, makes her the ideal candidate to help OFDA members succeed in the future," said OFDA president Chris Bates. Bates added, “Frank Gutwein also is very familiar with OFDA’s programs and his success as a smaller city dealer with multiple locations complements Carlene’s background. OFDA is very fortunate to have Carlene and Frank on the Board as our officers this year."
OFDA also announced new directors elected by the association’s membership to serve a 2010-12 term. They include David Feder, principal, ROE/Evolution Interiors in Chicago, IL; Steven Lang, principal, Dancker, Sellew & Douglas in Somerville, NJ; Jim Mills, principal of Office Interiors, Inc. in Halifax, Nova Scotia, Canada; and Matt Sveen, principal of Intereum in Plymouth, MN. Continuing dealer directors include: Jack King (Elements IV Interiors-Dayton, OH), OFDA’s past chair; Paul Barr (Premier Office Solutions-Hatboro, PA); David Branch (Facilities Connection-El Paso, TX); William Coon (Office Furniture NOW!- Austin, TX); Steve Freedman (Freedman’s Office Furniture & Supplies-Tampa, FL); Marlaine McCauley (Apex Facility Resources-Seattle, WA), and William Stoops (Elements-Denver, CO). Affiliate member directors include Alan Breslow of Global Industries; Barry Coyle of SolomonCoyle; Shelley deSilva of The HON Company; Richard Driscoll of Knoll; Paul Iles of Herman Miller; Phil Pearce of Groupe Lacasse, Haworth; Greg Richards of Teknion; Bob Theodore of Kimball Office, and Mark Vignoles of Service West. Jenny Niemann, vice president, channel development, with Steelcase, Inc., is joining the OFDA Board as that company’s new representative.
How Satisfied are You?
How Does Your Dealership Compare?
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As a thank you for participating, you’ll receive a FREE copy of the final report so you can compare your suppliers with others in the industry. Click this ad for a Link Directly to the DMSI Survey or call 800.542.6672. MARCH 2010
OFDEALER
PAGE 12
Salespeople
Speak Out How it looks from the field… By Trish Brock
It’s no exaggeration to say that sales is the primary focus for manufacturers and dealers alike these days, with both big and small decisions often being put on hold until sales improve. Prospecting, competing better, attempting to differentiate, improving skills, diversifying product and service offerings—everyone is scrambling to get sales in the door. In some cases it has become so frenzied that organizations are operating in a totally reactive mode. Planning has given way to “seat of pants” responses, with the timeframe for forecasts limited to weeks and days. Given the economic climate we are living in, all of this is understandable. With sales first and foremost on everyone’s agenda, I began to question how those efforts were being led and supported. Salespeople today are very much on the front line and doing battle under very challenging conditions. How well equipped are they, I wondered. Do they have what they need to win or are they winging it at each meeting and with every RFP? Do they have strong, knowledgeable leadership behind them or are they left to figure things out on their own? Are they in a good position to compete or are they floundering in chaos? In order to get at the answers, under the condition of anonymity, I interviewed seven salespeople that are in positions of dealer sales, manufacturer’s rep and manufacturer sales. continued on page 14 MARCH 2010
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Cover } continued from page 13 They are all excellent at what they do, strive for success, and usually achieve it. They are valued as key employees and they were all generous with their time and opinions. Their responses to my questions were revealing, with some being fairly consistent while others differed greatly depending on the position and company. Either way, for organizations that want to increase their chances of winning, it’s worth hearing what the feet on the street have to say about making sales happen. Question 1: Do you have the appropriate sales support materials, such as sales collateral, web site, readily available materials for bid responses, etc.? “The tools I use are good and getting more automated although they aren’t quite there yet. The more automated they get, the better (and less time consuming) they will be.” “The tools I am supplied with are fabulous and always being updated.” “As a manufacturer’s sales person my tools are good and luckily, so are my dealers’. Not all the dealers, however, have good materials and it slows down the process considerably for everyone.” “In regards to bid responses, every response is a reinvention. It is totally inefficient and takes me out of the field for two weeks every time. Then I have to catch up on the sales calls I wasn’t able to respond to during that time frame.” “My bid responses are done at the home office, which is a huge help as the process allows me to stay in the field.” “We have a lot of good materials and are getting more efficient, but bid responses are still time consuming and cause a lot of brain damage.” “Neither my firm nor the manufacturer I rep for has much of the things you asked MARCH 2010
about and, what they do have is little and of poor quality. I have asked, but nothing ever happens. I have to create my own materials. It’s time consuming and not very professional, especially when compared to the competition.” Question 2: Do you get training to improve your skills, has the training been helpful (vs. just a few nuggets of information) and do you use the training you have received? “Training could be improved upon. With budget cuts, there are fewer people to help us. There is a lot of product training but not much sales or professional development training. It would be really helpful if we had that—it’s always good to learn and improve.” “As with any training, I take what works for me within my own style. I get a lot of product training and my boss helps me when he is in town to improve my skills.” “The large manufacturer I work for is aware of the need, but nothing is being done. When I was hired (five years ago) I was simply expected to figure it out and that hasn’t changed. There is a shotgun approach at the home office that says if you call on enough people, you’re bound to get something. Problem is, I’m expected to call on people that I know aren’t my buyers which is taking time away from calling on qualified prospects. I’m very frustrated with the lack of strategy involved—it’s just faster and harder. Quantity doesn’t equal quality.” “I have received no training on either product or sales past the first indoctrination into the company. I also haven’t been to the factory and my boss visits only every 5-6 months.” “My sales training was horrible and very antiquated. It wasn’t strategic for a manufacturer’s rep at all, but focused on increasing the number
of cold calls and ironing out my elevator speech. It was a waste of time.” “My company has a lot of good training and programs that are available. They really make the effort to develop people within the organization including their salespeople.” Question 3: Do you get help, support and guidance from your boss or management? Are they able to help and give you ideas to sell more effectively? Do they get training? “My boss always makes himself available and I always get help.” “No. Everything is on the fly. They haven’t received training to my knowledge.” “My boss is too political and slow to respond. My company has focused on taking waste out of the process but has failed to recognize that the client relationship is still time consuming. With fewer resources, I am now being asked to do things that negatively impact those relationships and ultimately my sales.” “Most salespeople in this industry are farmers. Management needs to have more experience to teach people how to dig for new business, train, coach and generate fresh ideas. You can’t just give salespeople a quota—you need to show them how to do it.” “Thank goodness I’m not new because there is no one available to train or mentor. It is management by crisis— everyone is jumping from one fire to another. There is no long term strategy.” “I’m experienced and tenured. What I need is for my boss to help remove obstacles so I can do my job. It doesn’t happen.” “My boss is a really nice guy. He wants to help and tries, but doesn’t really have the experience.” continued on page 15
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Cover } continued from page 14 Question 4: Do you have opportunities to grow professionally, and is that important? Does your organization think that this is important? “Being in sales is like being in my own business and my company is there to help. There is no training, but if I found a training class, they will consider it and usually support it.” “No. They say there is, but there are no opportunities. They are not investing in people—it’s all about short term survival.” “It’s important, but everything is on hold now. It’s starting to hurt our efforts.” “It’s a flat organization and there is not a culture for growth. I haven’t even had a review in over two years.” “As people are getting laid off, a lot of young people are being hired, probably for financial reasons. It’s a mess. Loyalty is becoming an issue. When the economy turns around, there will be a lot of people jumping ship, including me.” “Personally, I have opportunities to grow. My organization recognizes that opportunities for growth are important and there needs to be more of them in general.” Question 5: What percentage of your time is spent selling vs. doing administrative stuff? “20% selling, 80% doing administrative, time posting, etc. When the economy was good, those numbers were reversed. If they want me to sell more, they need to let me sell.” “85% selling. My company is completely set up to support the sales process.” “50-50. There is too much duplication in the process and we can’t bog down salespeople with too many hand offs. We shouldn’t worry about what drives the back office—we have to be fast when it comes to getting from point A to B.” “90%-10%. My company has simplified many processes for salespeople. It’s very nice.” “60%-40%. Wish I had more time to sell.”
“30% selling-70% administrative, and I’m being generous. If I could spend more time selling, I would be more successful. I can’t be successful if I can’t be in front of opportunities. There are new business opportunities out there, but if you’re bogged down taking care of stuff that support people used to do, you can’t win. I have less time to network and dig up business.” 70% - 30% 75% - 25% Question 6: Does your organization ask and listen to what you need to be more effective? “They ask, but there are too many political agendas. I’m not sure anyone really listens. And when we are asked, I have to be very careful about what I say. Again, it’s the political agenda thing.” “What?” “Yes.” “Yes. Periodically they will check in to see if what we have is working, often one-on-one. They listen. It’s a huge company, but has a small company feel. There are no politics per se.” “I was given a questionnaire to complete, but there has been no conversation. I haven’t seen anything since.” “Yes, they’re pretty good about it.” “No. It’s too bad because I have a lot of ideas. Any ideas must have an immediate return. It’s whack-a-mole reacting to whatever pops up. It will be interesting to see what it’s like around here in two years.” Question 7: What would help you, as a sales person, to be more effective and to win more business? “I wish my company would listen to salespeople more instead of paying so much attention to the home office. Salepeople are in the street and talking to buyers. They need to back up the salespeople if they want more sales.” “I need more face time with prospects, because I’m totally bogged down with admin stuff.” “I have had every type of sales training imaginable over the last 15 years. I would be more effective if I understood the company’s strategy—if there is one!” “Manufacturers need strong dealers to survive. As a manufacturer sales person, I understand that right now it’s particularly hard for dealers and they can’t count on manufacturers for help, especially the weaker dealers. We allocate our resources where there will be a return, and that is with innovative and entrepreneurial dealers.” continued on page 16
MARCH 2010
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Cover } continued from page 15 “With all the cut backs, etc., now commission structures are in play, and I’m not getting compensated for some of the business I’m doing. Now that is being taken away. I have lost trust in my boss and my company and will be leaving as soon as I get the right offer.”
Salespeople are the engines that keep our companies running. If we are to weather this recession, we must consider the needs of those on the front lines. More than ever they need support, tools, fresh ideas, education and leadership in order to be successful.
“Too many people think salespeople are prima donnas, but people at the home offices aren’t out in the field and don’t understand. We are working harder than ever (and I’m OK with that because that is what this economy is about) but home office thinks that selling is easy. I just wish it happened like that.”
If companies want more sales—and who doesn’t?—it might be helpful to ask some of the salespeople on the team what they need to win. It could mean the difference between surviving and thriving.
“I’m working as smart as I know how and my company supports me—just hang on I suppose.”
What do you think? Do you have some great ideas? Join the conversation and let your comments be known on my new blog. trishbrockassociates.wordpress.com
It’s important to remember that all of these people are successful and committed professionals who are working very hard and doing their best in a challenging time. Each are passionate about their careers and were anxious to share their opinions, experiences and in some cases, frustrations. All intended for their comments to be helpful — they want to make a difference and hope that their comments are heard and taken seriously. Even though it was a smaller group, their comments echo throughout the industry and need to be heard.
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Trish Brock, Principal of Trish Brock & Associates, is a well-known industry consultant. Her crossfunctional consulting group specializes in helping dealers solve identity, branding and sales support collateral challenges. She also conducts Perceptual Market Assessments and Culture Evaluations to better define market positioning and effective brand messaging. She can be reached at 720-277-3035 or at tbrock@trishbrockassoc.com.
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dealerprofile Lessons in Longevity o f f i c e
f u r n i t u r e
A lot has changed in the office furnishings world over the past 100 years. We’ve moved from roll-top desks to executive suites; from metal typing desks to collaborative work environments; from filing rooms to media rooms and from water coolers to relaxing break rooms.
By Alicia Ellis
moving forward, assisted by current president, Richard Vaughn, to maintain and enhance the foundation built many years ago on customer service, attention to detail and commitment to the community it serves.
Through it all, Peabody Office Furniture has been there supplying the Boston metropolitan area with quality office furnishings and related accessories. A mainstay of Boston’s history since 1899, Lorenzo Peabody first opened Peabody’s as a typewriter and supplies shop.
An aligned Knoll dealer for many years and most recently a member of the OFUSA organization, Peabody’s client base is made up of 80% corporate and 20% education and healthcare, a segment the dealership’s management team anticipates will be growing as the result of a new healthcare division recently started.
After joining the family business in the 1930’s, Lester Peabody was, until his recent passing at the age of 101, the backbone of the company for more than 70 years.
Despite being one of New England’s oldest office furniture dealers, Peabody still faces the challenge, as most dealerships do, of bringing in new business during these difficult economic times.
Continuing in Lester’s footsteps, Jonathan Peabody, current chairman of the board, and his son Christopher, vice president of sales, have kept the family business
“We wanted to reinforce our history of competency, dependability and permanency in the marketplace,” said Vaughn who has been working with a PR firm over the past two years to develop a new brand
that showcases the longevity of the company while maintaining its core values. “The products we offer have their own branding through manufacturers but we needed our own identify independent of those products we represent—both internally and externally,” said Vaughn. “The brand must create and leave an immediate impression in the client’s mind. Differentiating yourself through creative branding can be the determining factor on why your firm was selected versus your competition.” “We wanted to come up with a tagline that showcased our experience, our investment in the future and let everyone know that we are in it for the long haul,” continued Vaughn. “We have always reinvested in the company to stay one step ahead for four generations and the resulting tagline — One Company, One Family: Creating Business Solutions for Over a Century — created the message we needed to move forward.” continued on page 19
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Dealer Profile } continued from page 18 “While many dealers are satisfied with branding their web site and marketing materials, we feel that in order for a brand to really be successful, it needs to be lived both externally and internally,” explained Vaughn. Internally, Peabody reinforces its brand by encouraging each of its 30 employees to be active in contributing to marketing efforts. Quarterly contests challenge employees to come up with ideas to incorporate Peabody’s brand into the Peabody window display, web site, mailers, postcards, and product brochures. A recent example that asked employees to come up with an ad theme tying in Knoll’s Generation chair with the multiple generations of the Peabody family generated some great ideas and resulted in a $500 prize for the winner and lunch for their entire department. Externally, the Peabody brand is incorporated into every piece of business communications that leaves their offices. Fortunate to own the downtown Boston building where their main office has been located for over 40 years, ample window space has allowed Peabody to build its brand while promoting many of the A&D firms they work with. “We provide design firms with the opportunity to design our display windows utilizing their energy, creativity and style with our products,” said Vaughn. “They have complete and unfettered access to express their design creativity to the Boston
MARCH 2010
marketplace. The design firm and Peabody both benefit through recognition and reinforced branding.” Peabody further extends its reach through participation in many charitable causes both locally and nationally. Besides donations of furniture and financial support, everyone in the company is encouraged to participate in worthwhile causes and often do so as a team. Employees have developed their own internal programs to help charities as well. On “Jean Fridays” employees are allowed to dress down but must contribute $1 to do so, with the money collected going to a local charity. Turkey baskets are created for Thanksgiving and delivered to families in need; presents are donated during the Holidays to a local children’s organization. Employees also participate in the Avon Walk for Breast Cancer, “Daffodil Days” for the American Cancer Society, and the Pan Mass Challenge bike-a-thon in support of cancer research. In addition, Christopher Peabody serves as a judge for CANstruction, an annual food drive contest to benefit The Greater Boston Food Bank. With the fifth generation of the Peabody family poised to enter the business in the next few years, the tradition of excellence first laid down by Lorenzo and Lester seems secure for many years to come, as the organization continues to learn from the past and moves into the future.
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Win the
Hearts&Minds of Your
Customers and Prospects Become an Office Furniture Financial Advisor By Larry Shapiro
We’ve all been hearing the news for well over a year now: The office furniture industry is in a depressed state and industry volume is down some 35%. No matter how you do the math, there is only about 60% of the volume out there than we once had. Aside from the issues of increasing operating margins and controlling costs, one of the prime questions dealers must ask is, What new programs, products or services can be offered to my clients and prospects which will result in both revenues and profits? And an important secondary concern is how to elevate the status of the dealership to something more than just a commodity broker of office furniture to that of a trusted financial advisor for office furniture assets.
of their existing furniture. And as a part of that process, wouldn’t it be interesting to offer the client the ability to turn those newly refurbished office furniture assets into some much needed working capital?
Because end-users aren’t buying much new furniture these days, an important service to offer clients is the refurbishing
client the opportunity to execute a “sale
the funds to pay for the refurbishing project itself but also supplies additional working capital for the company. In a much different scenario your client unveils plans for a much anticipated relocation to a new building. How do
Here’s how it works: The end-user
you, as an office furniture financial
contracts with your dealership for the
advisor, position your company as
refurbishing of the existing product. The
something other than just another
‘new’ workstations, seating and case-
furniture schlepper?
goods are now worth much more than they were before. Now suggest to the and leaseback” of the furniture. The resulting cash influx provides not only
Knowing your client’s needs for the existing furniture are now short term, you can focus on the tax and balance sheet advantages of a sale and continued on page 21
MARCH 2010
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Shapiro } continued from page 20 leaseback of the existing furniture. The furniture now has much
Sale-leaseback arrangements can help improve a company’s
more value than it will have in two to three years and your
balance sheet and its performance ratios. As these ratios show
client can cash-out on that value right now. Your client gains
improvement, your client can then make a more positive imp-
the use of cash and doesn’t have the hassle of unknown
ression on banks, venture capital funding groups and the like.
residual values at the time of the move. And you and your company have become positioned as a trusted furniture advisor.
Furthermore, there are also enormous tax advantages relative to the expensing of the lease payments themselves. For these reasons—all of them financial statement-oriented—the
These examples are just two of many potential situations in
conversation is best conducted at the highest levels of the
which the solution is not at all about the furniture. Instead, the
prospect’s offices. This discussion is for the CFO of the
focus is on financial considerations and how to structure a
company, not the facility manager. And this dialog is one best
deal that will be to the best advantage of the client and
conducted by the dealership principal. And it is that
end-user. The dealer principal can now assume the role of the
peer-to-peer conversation which best sets your dealership
knowledgeable resource on such matters.
apart from the competition.
About the author: Larry Shapiro is an office furniture industry veteran of nearly 40 years. He has worked with dealerships in multiple capacities and is currently national director of CORT’s Strategic Client Services. For additional details on CORT’s sale-leaseback program, contact Larry Shapiro via e-mail at larry.shapiro@cort.com.
Because customers demand more every day, we’re prepared for whatever comes your way. Need 10 offices in 10 business days or less? What about 20 chairs? Or maybe 10 tables? No problem and at NO premium, our Quick Delivery program, To You In 10 Days or Less, IBT you covered. Contact your National District Manager or visit us online for additional information, or to learn more about our high quality, stylish products. 800.482.1717 www.NationalOfficeFurniture.com
MARCH 2010
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Why Price (Almost) Never Wins a Contract It’s a common lament: End users frequently overlook capable vendors in favor of the lowest bidder. But how often does that really happen? While the RFP process masquerades all information in terms of cost, it’s almost never about cost alone, and a number of issues regularly factor into awarding a contract. Let’s dig a little deeper into the decision-making process, and see where you can outshine your competition and affect the client’s cost-benefit analysis in your favor.
Services The type, level and consistency of your service offerings are of primary importance during the bid process, but only as they apply to this particular client on this particular project. Take the time to understand your client’s needs, and then determine which of your service offerings are most applicable. Be sure to narrow your focus to only those services relevant to this bid, or you risk diluting your message. Once you’ve identified the best services to fit the client’s needs, show them how you’ll employ those services to help their project succeed.
Expertise You have valuable skills and experience your clients don’t have. That expertise translates directly into benefits the client will reap if they select your company. Effectively showcasing your expertise, especially as it rounds out those areas where your client may be light, will add value to your bid beyond just dollars. A word of caution: Be careful to position your expertise as a way to support the client’s existing knowledge base and not as a replacement for it. Making the client feel threatened or insulted is one of the quickest ways to get off the shortlist, and may even eliminate you from future bids. MARCH 2010
By Julie Knudson
Reputation A positive reputation within the industry can give you significant leverage. Being known as a dealer who is budget-conscious, deadline-driven, innovative and resourceful will move you ahead of your competition. It’s also wise to cultivate an image as a friendly and fair bidder among the companies against whom you regularly compete. There may come a time when your success hinges on your ability to partner with them on large or complex projects. Now that you’ve identified some tools to help tip the scales in your favor, it’s time to get serious about demonstrating that you and your competitors aren’t equal.
Know your competition Determine where you hold key advantages over your competition for this bid. Consider things such as competing projects that are already occupying your competitors’ resources; geographic limitations the other bidders might be facing, and previous similar projects on which a competitor may have performed poorly or left behind an unhappy client. While it’s rarely effective to call out another bidder’s weaknesses, you can gain significant traction by showcasing your capabilities in areas where you know the competition lacks positive results.
Know your client Many dealers spend a lot of time scoping out their competition, but devote little or no energy to learning about their clients. This fundamental oversight is usually obvious to the client throughout the bid process, either because they don’t receive the type of questions they expect, or because the bid response contains information that has no bearing on the project at hand.
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continued on page 23 PAGE 22
Knudson } continued from page 22 Fortunately, this is easily exploited by a savvy bidder. Research your client’s industry, history, progress and plans for the future. Know their competition, their collaborators and even their investors. Provide them with project examples and client references they can relate to such as accounts similar in size, structure, region or industry. By showing the client that you understand their needs, you demonstrate your value as a project partner.
A word about low-ball bidders You know who they are—the dealers known for submitting below-market bids incapable of covering the barest of costs just to win the contract, and then hammering the client with change orders that blow the project budget to smithereens. Their original bids are so low the client can do little but salivate, yet you know the outcome will be an enormous mess. I'm frequently asked if it’s acceptable to warn clients about low-buck bids, and my answer is always the same: If the client
isn’t experienced enough to spot an errant bid on their own, they're unlikely to understand the scope of the problems you're trying to help them avoid. On the other hand, if the client is wise to the ways of the industry, your warning may appear to be nothing more than a self-serving and under-handed attempt to exclude a competing bidder. Either way, your reputation won’t benefit from the interference and you’ll spend time repairing your damaged image when instead you should be focused on improving your bottom line. Your best defense is to maintain your integrity and present a fair and comprehensive bid response. An RFP is designed to generate competing bids based on a single set of criteria, and price is most important only when all other things are equal. Formulate your response in a way that demonstrates your competition can’t match your services, expertise and reputation, and the true value of your bid becomes clear.
A former facilities manager, Julie Knudson now helps industry vendors create successful bid response packages, marketing materials and thought-leadership articles. For more information please visit her web site, www.olympicbay.com. She can be reached directly at 425-374-4664 or julie@olympicbay.com.
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Time to Get Back to Basics and Sell Value in Today’s Competitive Market
the
Last
word gregnemchick WorkPlace Furnishings, Inc. President & CEO
Few people in the office furniture industry today would argue that we are not currently in a world of reduced opportunity. There are fewer prospective sales and therefore, fewer chances to win. That means our teams today must be better at closing the sales they do have a shot at than ever before. Unfortunately, though, many dealers have discovered the salespeople they thought were hunters, are in reality annuity farmers or simply order takers. So how do we grow the content of our funnel in today’s business climate, given the current state of the tools and abilities that our teams have? The answer to that question must begin with a greater emphasis on new business development training and a consistent and persistent message from dealer ownership and management that clearly defines the company’s expectations for success. In some locations failure to meet quota has become acceptable and all too often, lack of accountability within the sales forces has become the norm. That’s not a viable approach for long-term business continuity. Track your opportunities, know who they are assigned to and monitor where they are in the sales process. Have regularly scheduled meetings with each account executive to review successes and failures and make it clear that failure is not an option for the long term. Commit to getting out from under the requirement to be the low cost provider for your current and prospective clients and start selling the value of your offerings/services from Step One in the cycle. It is critical that we position our dealerships as the source of best value, not as the lowest net price provider. Teaching how to do all that must be Mission One. There may have been a time when the volume of the sale supported lower margins, but not today. MARCH 2010
Let’s sell our entire package and focus on what differentiates us from the other dealers in our market and the ways we can make a difference for our customers and their projects. And let’s not turn our backs on the basics. I understand the potential of the new generation of sales and marketing and customer outreach vehicles—the Internet, social and business networking, blogs and all of the other electronic tools. I use them all myself to hunt for opportunities and network. But these tools can be very time consuming. Don’t let your account executives get into the habit of sitting at their computers and networking online during prime selling time (9-4), when they should be out in the field, face to face. A successful account executive needs to schedule specific time periods for electronic research and those periods should be before 8 AM or after 6 PM. During prime time, your sales team should be out traveling, meeting face to face or communicating directly by phone with prospective clients. Let us not forget either that another large part of the average day is overseeing projects while working with designers and project managers. Without the proper discipline, it’s only too easy to get caught up in busy work and distractions and find ourselves with no time to sell. Now is a time to return to old school selling—face to face, shaking hands, listening to needs and developing relationships. People still buy from people that they like and trust and at some point value always comes into play! So when do we sell value? Answer: At all times in the sales process. It starts at the very beginning and stays that way right through to the punch list and beyond. As owners, managers and AEs, let us hold each other accountable for the task of selling. Our industry depends upon it!
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